Ahead of Market: 10 things that will decide D-Street action on Monday
On Friday, the Nifty50 settled 0.51% higher at 19,230, while the S&P BSE Sensex rose 0.44% to 64,363. Meanwhile, real estate stocks surged to a record high and were the top sectoral gainers.
Here's how analysts read the market pulse:
«After a gap-up opening, Nifty faced resistance around 19,250-19,300 levels, and we can see maximum put writing at 19,200 levels, which may act as strong support for Nifty.
We can see maximum open interest in the 19,300 call option, so one should only be bullish on Nifty if it closes above its crucial 100-day moving average, which is placed at 19,300,» said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Om Mehra, Technical Analyst, SAMCO Securities, said, «From a technical standpoint, the weekly chart displays a Bullish Inside Candle formation, with the weekly RSI at 51. On the daily chart, the 50-day moving average acts as a formidable resistance at 19,450 for the Nifty 50.
Looking at the options market, there's substantial interest at the 19,500 call strike price and 19,000 put strike. The anticipated weekly trading range is between 19,000 and 19,550, but a decisive break in either direction could alter the range-bound trend.»
That said, here’s a look at what some key indicators are suggesting for Monday's action:
US market
Wall Street's main stock indexes rallied on Friday as bond yields fell sharply after data showed signs of slowing US jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign.
The Labor Department's report showed nonfarm payrolls increased by 150,000 jobs in October, much less than the expected 180,000 increase, partly due to strikes at Detroit's Big Three automakers.
